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The probability that a customer shops at za in week 0 will shop at za in week 2 = 57.76%
In this question, we have been given wb and za are two competing grocery stores in a particular region. the probability that a customer who shops this week at wb will shop again at wb next week is 64% whereas the probability that a za customer will shop next week at za is 76%.
We need to find the probability that a customer who shops at za in week 0 will shop at za in week 2.
Let in week 0, 100 customers shop at za.
The probability that a za customer will shop next week at za is 76%.
This means, in week 1, 76 customers shop at za.
And in week 2, 76% of 76 customers will shop at za.
76 percent of 76 = 57.76
Therefore, the required probability is 57.76%
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